Purchase of Goodwill : Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business. Requirement1: The Computation of Goodwill paid at the time of business of Seacoast report.

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Answer 1

Question

Chapter 10, Problem S10.13SE

To determine

Purchase of Goodwill:

Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business.

Requirement1:

The Computation of Goodwill paid at the time of business of Seacoast report.

To determine

Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.

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Answer 2

Question

Chapter 10, Problem S10.13SE

To determine

Purchase of Goodwill:

Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business.

Requirement1:

The Computation of Goodwill paid at the time of business of Seacoast report.

To determine

Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.

Expert Solution & Answer

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Answer 3

Question

Chapter 10, Problem S10.13SE

To determine

Purchase of Goodwill:

Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business.

Requirement1:

The Computation of Goodwill paid at the time of business of Seacoast report.

To determine

Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 10, Problem S10.13SE

To determine

Purchase of Goodwill:

Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business.

Requirement1:

The Computation of Goodwill paid at the time of business of Seacoast report.

To determine

Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.

Expert Solution & Answer

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Answer 5

Chapter 10, Problem S10.13SE

To determine

Purchase of Goodwill:

Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business.

Requirement1:

The Computation of Goodwill paid at the time of business of Seacoast report.

To determine

Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.

Answer 6

Chapter 10, Problem S10.13SE

To determine

Purchase of Goodwill:

Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business.

Requirement1:

The Computation of Goodwill paid at the time of business of Seacoast report.

Answer 7

Chapter 10, Problem S10.13SE

To determine

Purchase of Goodwill:

Sometimes, the business purchase the another business in lump-sum consideration. In such cases, the consideration paid might be more than the net assets taken over by the business. The net assets of the business taken-over is difference in the amount of fair value of total assets taken over and fair value of liabilities taken over. The difference between consideration paid and net assets taken over shall be recorded as Goodwill at the time of purchase of another business.

Requirement1:

The Computation of Goodwill paid at the time of business of Seacoast report.

Answer 8

To determine

Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.

Answer 9

To determine

Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Requirement2: The Journal entry for recording the purchase of business of Seacoast report.

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Requirement2:

The Journal entry for recording the purchase of business of Seacoast report.